Rudd threatens the states with TAFE takeover

KEVIN Rudd has deepened a dispute over technical education by threatening a federal takeover of the TAFE system.

KEVIN Rudd has deepened a dispute over technical education by threatening a federal takeover of the TAFE system amid concerns about a funding regime to begin next year.

 The move starts a new fight with the states after similar rows on healthcare and school funding but also raises the prospect of redrafting a landmark deal with the states that is barely one year old.

Mr Rudd vowed to bypass state governments and give federal funding directly to TAFE colleges if the states cut their own spending on the sector, but he did not promise any extra funding.

Former prime minister Julia Gillard signed agreements with the states last year promising $8.8 billion over the next five years, but some states have cut their own outlays in the wake of the federal injection. Victoria cut TAFE spending by $300 million, NSW cut it by $80m and Queensland cut it by $79m last year, while Western Australia imposed changes this year that the state teachers' union estimated to be worth $50m over four years. The South Australian Labor government announced cuts to TAFE in last year's mid-year budget review of $9.6m in 2014-15, increasing to $21.9m per annum thereafter.

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Mr Rudd warned that TAFEs were starting to "wither on the vine" after the state cuts.

"I announce today that a re-elected Labor government will require that state governments maintain and grow their funding of TAFE," Mr Rudd told the Labor campaign launch in Brisbane.

"Second, if those conditions are not met by July 1, 2014, we will move to provide commonwealth funding directly to individual TAFE colleges.

"Third, if state governments frustrate this ambition, then from 2015 the Australian government will begin directing its own TAFE funding into a new TAFE Australia network directly funded by the commonwealth."

The Coalition dismissed the idea as a repeat of Mr Rudd's vow during the 2007 election campaign to seek a federal takeover of the health system if the states did not agree to reforms to end the "blame game" on hospitals. Mr Rudd retreated from the takeover, however, and Ms Gillard completed a health reform deal in 2011.

Labor has also been vulnerable on technical education. It is far behind schedule on delivering trades training centres for up to 2650 secondary schools under a $2.5bn pledge in 2007.

As well, the government's 2007 promise of a "productivity places program" for technical education was cut and the money rebadged for a $3bn training program in May 2011.

Mr Rudd gained some support for his move yesterday.

"The commitment by Labor to tie funding to TAFE or to fund TAFE directly in the last instance may be the only thing that will protect TAFE as a public national resource," said associate professor Leesa Wheelahan of the University of Melbourne. "The state governments are hell bent on privatising TAFE."